Mumbai: Network18 has posted consolidated revenues of Rs. 969 crores (including proportionate share of JVs) in Q3 FY18 against Rs. 905 crores in the corresponding quarter last year, a 7% YoY growth, as revival in growth in the broadcasting business was partially offset by a pullback in the TV shopping business.
Profitability improved substantially, led by cost control in TV shopping accentuating improved margins in broadcasting.
Segment Operating EBITDA on a consolidated basis, including the performance of Joint ventures for the quarter ended 31st December, 2017, stood at Rs. (13) croresvsRs. (58) crores in the corresponding quarter last year.
Consolidated Revenue as per Ind AS (accounting the JVs under Equity method) for the quarter ended 31st December, 2017 stood at Rs. 366 crores as compared to Rs. 373 crores in the corresponding quarter last year.
Operating EBITDA on a consolidated basis under Ind AS for the quarter ended 31st December, 2017 stood at Rs. 8 crores, vs Rs. (14) crores in the corresponding quarter last year.
Mr. Adil Zainulbhai, Chairman of Network18 said, “We have made a lot of progress in strengthening our digital properties, and growing our position in TV in news and entertainment. We will continue to invest across broadcasting and digital.”
Highlights for the quarter:
Advertising growth returned, led by recovery in ad-environment and a favourable base from mid-November: The advertising environment has improved since Q2, but certain segments are still to see full recovery. Tailwinds of strong financial markets, upcoming union budget, state elections and continued revival in consumer spending are positives.
TV18 posted 10% revenue growth (including JVs): Business News continued its steady growth despite its niche nature, and Hindi News performance pushed National News revenue growth to 14%. Regional News offset some of the gains, led by slower ad-recovery and lower government spends this year. Our entertainment bouquet’s broadcasting revenues grew in line with industry; as appetite for high-impact advertising is reviving, but with a lag.
TV18’s News bouquet ended CY17 as #1 in viewership and reach: TV18’s overall share of News viewership averaged 9.2% for the quarter. Our Hindi News channel gained 4%+ share in a year, in the fastest growing and most competitive genre. Coupled with growing traction through our pan-India vernacular footprint, TV18 ended Q3 as #1 in News viewership.
Viacom18’s share of entertainment viewership rose to ~11%: Colors maintained its #1 rank in Urban HSM, the category which drives monetization. Viacom18 continued its dominant position in niches like Kids and English entertainment. VOOT viewership continues to grow, and engagement around Big Boss (Live voting, digital-only spin-offs, uncut content) has pushed up monetization off a low base, despite challenging markets.
Colors Tamil slated to launch in Q4; consolidating on last year’s launches: The ramp-up of all TV channels launched in Q1FY17 is well underway. Rishtey Cineplex has plugged a vital whitespace, and has broken even in the second year post launch. Regional News channels are well-placed to benefit from any tailwind in the respective markets.
Network18’s digital properties continued to ascend the traffic and monetization charts: MoneyControl app has 3x the users of its nearest competitor. Network 18 group was the most visited and viewed media network on Youtube as per Vidooly’s News Network Report (Sep-Nov 2017). Network18’s digital revenues (mainly MoneyControl, News18.com and Firstpost) have grown 14% YoY to Rs 36 Cr.
HomeShop18 focusing on profitability, combination with ShopCJ to get scale benefits: While the business remains under pressure, cost reduction has slashed losses. The proposed combination with ShopCJ will further provide scale and synergy benefits.
